Get discounts, pay with your phone with Google Wallet, Offers

Google has formally announced Google Wallet and Google Offers. The two …

Just as expected, Google unveiled its wireless payment system and its new Groupon-like deals site at a press event in New York on Thursday. Called Google Wallet and Google Offers, the two features can operate either separately or together to make it easier to pay for things in person and get deals while shopping.

"Our goal is to bring together all the pieces of the ecosystem. Your phone will be your wallet. Just tap, pay, and save," Google VP of commerce Stephanie Tilenius told the crowd. "We believe 2011 and beyond will be the age of MoLo—Mobile Local commerce."

Here's how the whole thing will work, starting with Google Offers. Just like Groupon, LivingSocial, and a plethora of other daily deal sites, a coupon for a local business will be sent to your inbox as an "offer of the day." It will also be able to send offers to people who check into certain businesses and make offers tied to certain places—Google said the service is "very contextually aware."

That's where Google Wallet comes in. Among other things, Google Wallet will be able to store your credit card information (Google's launch partners include MasterCard and Citi) as well as loyalty rewards, purchase points, and any saved-up Google Offers that might apply. Then, users who have Near Field Communications (NFC) enabled Android phones will be able to simply whip out their devices when shopping and tap them on electronic payment processors in order to get deals and pay for their goods.

Google said that more than 20,000 US merchants—including Macy's, Subway, American Eagle, Jamba Juice, CVS, and Walgreens—are already set up to work with Google Wallet, which functions with the PayPass systems that many merchants already have in their stores. Users don't even have to open up the Google Wallet app in order to pay, either; if they've already chosen which cards they want to use, they can simply tap the phone on the PayPass terminal.

But what about security? Google said that as long as the device's screen is off, NFC is disabled so that nearby skimmers can't steal any information. And NFC-capable Android phones—of which the Nexus S is the only one, for now—will store your credit card information on a secure chip that is both tamper- and laser-resistant. Even if you lose your phone, a thief wouldn't be able to extract the information on his own (though stopping that person from immediately buying thousands of Subway sandwiches with your phone could be a challenge).

The company said that the first markets it's targeting for Google Wallet are San Francisco and New York, with more on the way in the coming months. Google reps also said that more features are coming, such as digital receipts that transfer back to your Android device after you pay.

"We plan to aggressively enable everything a consumer would want to put in their wallet," Google VP of payments Osama Bedier said.

As we mentioned earlier, the Nexus S is currently the only Android phone available with NFC capabilities, but Sprint's Fared Adib said at the event that the carrier is working with Samsung, Motorola, and HTC to bring more NFC phones to the market. Google also indicated during a post-event Q&A that Google Wallet could even work with an NFC sticker on the back of a phone, and said that it's looking at bringing such stickers to market for those without NFC-capable phones.

Even if Apple does follow up with its own NFC offerings, it's clear that Google and its partners strongly believe in the future of Google Wallet. "There can be no doubt that today's announcement will be looked at as the inflection point where mobile payments move from concept to mass production," said Citi's Paul Galant.

At some point I'm sure NFC payment will become common, and it sounds appealing in a generic sense. But given that we still sign credit card receipts when a far better authentication technology (PINs) have been available for years, I don't anticipate the payments infrastructure changing very quickly...

I've long since dreamed of the day that my wallet could be replaced by my phone. However, the PayPass system isn't nearly pervasive enough to make that possible. If I can't count on an NFC reader being everywhere I'd want to use my credit card, I still need to carry my credit card.

I guess I just don't understand the fascination with NFC. What does it do that my credit card doesn't? Especially since I get 2%-5% cashback with my credit card.

Read the article again:

Quote:

Among other things, Google Wallet will be able to store your credit card information (Google's launch partners include MasterCard and Citi) as well as loyalty rewards, purchase points, and any saved-up Google Offers that might apply.

of course you get cashback. Your credit card charges the place you're using it too. The rip-off cycle allows you to get cashback or even some crappy gift for 50,000 "points" so that you'll use "credit" instead of debit. Why? because by law in many states, when you swipe debit, the bank has to tell you you're over your limit. Credit, alternatively can go way over your limit, charging insane amounts of overdraft fees all day. Thanks cashback.

Oh, and I'm glad google is getting involved, but I don't think I want to partake in this one. I think they're taking the lazy route, when the better route is what they do in Japan/China where your credit card company adds it to your bill. That sort of setup could create competition for banks, who right now are only limited by their imaginations, and the fed's arbitrary balance.

I guess I just don't understand the fascination with NFC. What does it do that my credit card doesn't? Especially since I get 2%-5% cashback with my credit card.

It IS your credit card. Google Wallet stores your credit card details on your phone, and you tap your phone instead of swiping your card. It eliminates the need to carry the card (not really a big issue), prevents the problem of worn out magnetic strip on the card (I've never had trouble), unifies all your payment methods and tracking (getting into useful things here), and is making strides towards the ability to pay any individual via your phone, without the need for bulky credit card terminals.

Obviously there's downsides, and the benefits don't suit everyone, but being ignorant about the technology is not a valid argument against it.

I guess I just don't understand the fascination with NFC. What does it do that my credit card doesn't? Especially since I get 2%-5% cashback with my credit card.

The way I understand it is as follows:Currently I have RFID enabled Amex and Chase cards. My phone would be able to store both of these cards. When I get to a teller with an RFID/NFC enabled reader, I can pull out my phone and choose which card my phone presents to the reader. If the readers are everywhere (someday), I won't need to keep credit cards in my wallet.

I imagine having a unique token for my drivers license someday. When a reader is presented that token, they would be able to pull up my photo/age/name from the DMV.

of course you get cashback. Your credit card charges the place you're using it too. The rip-off cycle allows you to get cashback or even some crappy gift for 50,000 "points" so that you'll use "credit" instead of debit. Why? because by law in many states, when you swipe debit, the bank has to tell you you're over your limit. Credit, alternatively can go way over your limit, charging insane amounts of overdraft fees all day. Thanks cashback.

Wow you're a nut.

Credit card companies want you to use credit instead of debit because that's how they make money. The credit card company earns a fee for every use of a credit card transaction, but they don't get that same fee via debit because of how the transaction is structured. Contrary to nutjobs everywhere, credit card companies don't make meaningful profits from overages, they earn it on interest fees and transaction payments.

While I'm all for ditching the George Costanza Wallet, what happens when you lose your phone? Some random asshole can now go on a shopping spree. . . I know wallets get lost but that seems to happen a lot less frequently than misplacing one's phone. Sure, you could argue for people to use passwords on their phones but we all know that John Q. Public doesn't know how to do that. Maybe I'm being overly cynical. I see this ending poorly, even if it is a neat idea.

of course you get cashback. Your credit card charges the place you're using it too. The rip-off cycle allows you to get cashback or even some crappy gift for 50,000 "points" so that you'll use "credit" instead of debit. Why? because by law in many states, when you swipe debit, the bank has to tell you you're over your limit. Credit, alternatively can go way over your limit, charging insane amounts of overdraft fees all day. Thanks cashback.

Wow you're a nut.

Credit card companies want you to use credit instead of debit because that's how they make money. The credit card company earns a fee for every use of a credit card transaction, but they don't get that same fee via debit because of how the transaction is structured. Contrary to nutjobs everywhere, credit card companies don't make meaningful profits from overages, they earn it on interest fees and transaction payments.

I'll say he's nuts, and ignorant as well since a law was passed last year that made the ability to go over your limit opt-in. So no, credit card companies can't get rich off this unless you let them.

Maybe now is the time Google and Apple can hash out old frays. I would be excited to hear that next generation iPhones came with technology that enabled Google Wallet. Here's an idea, bring your powers back together and redefine the market. Imagine harvesting 1% of the world's transactions... These two big players could change the playing field with merchant services.

If it's based on existing credit cards, then it's just as insecure (the CC number is both the public identifier *and* the authentication!). I was hoping for something more innovative in terms of 2-way encryption and authentication.

However, its reassuring to know that google is (for now) staying out of the banking sector and is just (I gather) concerned "only" with collecting the consumer data. I expect this from them, but I don't want to see a Chase/Google/MasterCard merger or anything like that!

of course you get cashback. Your credit card charges the place you're using it too. The rip-off cycle allows you to get cashback or even some crappy gift for 50,000 "points" so that you'll use "credit" instead of debit. Why? because by law in many states, when you swipe debit, the bank has to tell you you're over your limit. Credit, alternatively can go way over your limit, charging insane amounts of overdraft fees all day. Thanks cashback.

Wow you're a nut.

Credit card companies want you to use credit instead of debit because that's how they make money. The credit card company earns a fee for every use of a credit card transaction, but they don't get that same fee via debit because of how the transaction is structured. Contrary to nutjobs everywhere, credit card companies don't make meaningful profits from overages, they earn it on interest fees and transaction payments.

Both my bank and the vendor charge *me* a fee when I use debit.The credit card company charges the vendor a fee when I use credit, plus I get 1% cash back.

I'm certainly interested in NFC but I will never ever use Google as a conduit for it, I'll wait till my bank offers it. Ofcourse, Europe is a vastly different market with a lower prevalence of credit card payments in general, most of us here use debit cards for daily purchases.

Also we dont pay any fees for debit card payments and the fee charged to shopkeepers for PIN payments here is, I believe, around 10 cents or less.

"Google VP of payments Osama Bedier": "We plan to aggressively enable everything a consumer would want to put in their wallet"

Google won't be messing with my cash!

Seriously, what's to prevent fake charges? You walk too close to a merchant's terminal with the phone turned on, they charge something to your card. You may notice it on the bill, and contest it, but how could you prove you didn't buy the supposed item?

I will use a system like this when it is structured like so:1. I swipe my phone to pick up the payment.2. I see the pending payment on my device. No payment have been made yet. I get to manually approve the payment by entering a password. If I do not the payment is denied and the merchant get a response back from their system saying payment failed. Bonus: the device pulls useful information to help me decide if I should approve the payment. Tell me if this purchase will put me over budget in a category, or if the store has a bad return policy.

Heck I want this for any payment on my credit card right now. Even if some asshat skims the card, involve me in the approval process and let me deny them trying to use my credit card for their purchases.

But as it stands this google wallet system does not look like it lets me have any greater control over what gets processed on my card. To me that is the biggest problem. I am happy using my credit card to buy things. Swiping my phone instead of my card does not look to make anything better than it is now. It only makes my phone a greater theft target.

"Google VP of payments Osama Bedier": "We plan to aggressively enable everything a consumer would want to put in their wallet"

Google won't be messing with my cash!

Seriously, what's to prevent fake charges? You walk too close to a merchant's terminal with the phone turned on, they charge something to your card. You may notice it on the bill, and contest it, but how could you prove you didn't buy the supposed item?

Seriously, what's to prevent fake charges? You walk too close to a merchant's terminal with the phone turned on, they charge something to your card. You may notice it on the bill, and contest it, but how could you prove you didn't buy the supposed item?

Whats to stop fake charges now when you hand the waiter your credit card? Answer: nothing.

This system at least requires a PIN for everything, so you *know* when you're getting charged.

Presumably Google isn't going to restrict the use of this to Android-based phones, but would provide or allow applications for iPhone (when NFC comes, or even before, for the non-NFC parts), Blackberry (maybe *all* of this years phones will have NFC?) and Win7 phones (when they have NFC). Google would presumably use Android to push early adoption, but wouldn't want to restrict it to that population, even if it's growing by leaps and bounds.

In theory NFC is great. But I don't think its going to catch on very quickly here in the States. With Google Wallet:Pull out my phoneOpen an appSelect a card (though you can probably set a default)Enter a PIN?Tap the phone to the reader

With credit card:Pull out my cardSwipe cardIf purchase is more than $35, sign receipt

As some have already stated, I still need to carry around my ID, so carrying another card is not that difficult. Additionally, can you link a debit card to the Google Wallet? That's how I make most of my smaller daily purchases. For me, there's not much of an increase in value in using NFC/Google Wallet. My perception of the US market is that most users won't latch on to an idea unless there is a significant increase in perceived value. And that's not even touching on the additional fees that will be popping up if this thing takes off. Any way to tack on a couple extra cents to the transaction cost...

The one area that may help consumer adoption is the coupon integration so we can feel better about buying more stuff we don't need (woohoo, $0.50 off this energy drink I wasn't going to buy anyway).

If i got one of the video demos right, the app has a default card and will auto launch if the phone registers a payment terminal query. Also, the pin request had various timing options. So that one could set it to not require a pin, if there was multiple uses within a time period.

Seriously, what's to prevent fake charges? You walk too close to a merchant's terminal with the phone turned on, they charge something to your card. You may notice it on the bill, and contest it, but how could you prove you didn't buy the supposed item?

Two things:1. NFC is only active with the screen on.2. It requires a PIN.

FYI, many credit cards come with NFC technology now. What's the difference between those cards and Google's phone based one?Two things:1. NFC is always on.2. No PIN is required.

Maybe you should be more worried about what's in your wallet than what Google's proposing here. Of course a false transaction is virtually impossible given how close you have to get the card to the reader.